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Get to know about the duties, responsibilities, qualifications, and skills requirements of an account receivable clerk. Feel free to use our account receivable clerk job description template to produce your own. We also provide you with information about the salary you can earn as an account receivable clerk.

 

Who is an Accounts Receivable Clerk?

An account receivable refers to a legally enforceable claim for payment or reimbursement held by a business or enterprise for goods and services delivered. Such payments are usually demanded because such services have been rendered on order and have not been paid for. These claims are normally drafted via invoices generated by a firm and sent to the appropriate customer for onward payment within a time frame based on the agreement.

Generally, an account receivable appears as an asset in a balance sheet and is one of several accounting transactions conducted by a business venture. Most accounts receivable are viewed as credits owed to a business by customers for services offered and goods or products supplied. It is important to pay attention and credence to the accounts receivable metrics because it can have great impacts and effects on the liquidity of an enterprise or business; thus, the need to make the investment risk as small as possible. In most organizations, the accounts receivable team handles and receives funds and cross-checks them with the pending balances. These teams comprise several professionals and units including the collection and cashiering team and the clerical team. An accounts receivable clerk forms part of the clerical team and performs several functions.

The role of an accounts receivable clerk is typically an entry-level position; they are accounting professionals with specialization and skills in recording financial transactions that generate revenue for the business or firm. They highlight the organization’s profits by monitoring the inflow of funds on the income section of a ledger. An accounts receivable clerk plays a vital role in ensuring the firm is being paid properly; they update account statements and report to managers and executives to ensure the company receives accurate payments for services and goods delivered. Though computer software has automated several duties of accounts receivable clerks, they still guarantee and ensure data is accurately and correctly entered and calculated. This professional niche is suitable for individuals who love and understand numbers perfectly as well as detail-oriented persons. Crucially, an accounts receivable clerk prepares the invoices and bills sent to customers that bought goods or received services. While paying attention to detail, the accounts receivable clerk records discounts where applicable, transactions date, shipping amounts, and prices or fees. When outstanding customers’ debts are redeemed, accounts receivable clerks record them in the ledger to ensure conformity. Afterward, they deposit the received cash and cheques into the firm’s bank account.

Essentially, an accounts receivable clerk prepares and generates monthly, quarterly, or yearly fiscal financial statements by lodging and tracking receipts, deposit slips, and invoices accordingly. They review accounts receivable ledgers to identify any discrepancies and correct them appropriately. An accounts receivable clerk pores over invoices, slips, and receipts to make sure all revenue is documented and accounted for in the ledgers. Though the position of an accounts receivable clerk is entry-level, their work is arguably vital in the accounting department; they monitor and process the firm’s incoming payments or reimbursements. Many accounts receivable clerks possess a bachelor’s or associate degree in accounting or finance; superior organizational, arithmetic, and computer skills are taught as part of these degrees. Most accounts receivables have timeframes, the account receivable clerk ensures these timelines are met by sending prompt reminders to the customers involved. Bookkeeping has been earmarked as one of the most important responsibilities of accounts receivable clerks. They reconcile accounts regularly and update posts in the accounting software as part of their bookkeeping tasks. In some firms or ventures, the accounts receivable clerk streamlines and organizes the accounting system to maintain decorum and might be asked to support management during audits and peak periods.

Fundamentally, an accounts receivable clerk has a moderate to basic understanding of the general aspects of accounting and prepares reports of delinquent accounts as well as replies to customers’ queries. Whilst presenting annual or quarterly fiscal reports, the accounts receivable clerk records losses made by the firm as well. Similarly, they manage communications and interactions about bills and invoices and collaborate with other account professionals such as accounts payable specialists to balance the firm’s financial transactions and records. The accounts receivable clerks work within the confines of the company’s financial policies and might handle custom payment plans. These days, accounts receivable clerks are found in multiple industries such as education, healthcare, non-profit, and insurance. They are mostly office-based, full-time workers, and might be required to work overtime in special circumstances including tax seasons, audits, or the end of a fiscal year or period. Rarely or occasionally do the accounts receivable clerks travel to various locations to meet customers. Some organizations provide compulsory on-the-job software and equipment training for new accounts receivable clerks. Conclusively, most accounts receivable clerks update their skills and proficiencies by partaking in seminars, conferences, workshops, and mentorship programs.

 

Accounts Receivable Clerk Job Description

Below are the accounts receivable clerk job description examples you can use to develop your resume or write an account receivable clerk job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.

An accounts receivable clerk’s duty includes securing revenue, verifying and posting receipts, and resolving discrepancies and complaints. Also, they ensure the organization receives adequate payments for its services. However, accounts receivable clerks perform other functions and tasks which are enumerated below;

• Prepare invoices to be sent to customers: In business transactions, a seller issues an invoice to the buyer to notify them when payments are due. Hence, an accounts receivable clerk prepares invoices on behalf of the organization and sends them to the relevant customers. Such invoices contain information like the amount of sales tax charged, the cost and quantities of goods and services offered, and the payment structure or format. For instance, if a firm prefers to receive payments through bank deposits, the accounts receivable clerk includes the bank details of the firm in the invoice.
• Make deposits to the company’s account: Some businesses choose to receive payment in cash. When such happens, the accounts receivable clerk is tasked with filing the deposit receipts and lodging the cash into the firms’ bank accounts. Also, they collaborate with banks to verify credit card payments and electronic bank transfers. In situations where a cheque bounces, for example, the accounts receivable clerk communicates with the issuing customer to determine the cause and develop alternative payment.
• Record transactions into ledgers: Businesses and organizations use the information on transactions to compute total revenue generated on a yearly, monthly, weekly, or daily basis. Therefore, for every payment received for products or services, the accounts receivable clerk takes records in compliance with the company’s accounting policies, principles, and procedures. They can use accounting software to record all cash transactions, credit card payments, and redeemed invoices into the digital ledger.
• Produce statements and other accounting documents: Most accounts receivable clerks team up with other accounting professionals and staff to produce several financial documents. This includes profit and loss statements, cash flow, and balance sheets. Also, they summarize accounts receivable monthly to figure out the total amount of money owed by debtors and customers. The accounts receivable clerk also produces statements for audit meetings and answers the auditor’s questions.
• Monitor accounting systems to ensure they function optimally and report malfunction or failures to information technology experts.
• Maintain the enterprise’s value and reputation by keeping financial information confidential and discreet always.
• Verify, classify, compute, post, and record accounts receivables’ data daily.
• Send bill reminders and contact customers to ensure payment of invoices when due.
• Respond to and resolve customers’ queries, complaints, issues, and questions.
• Reconcile the accounts receivable ledger.
• Update and maintain customers’ files to include names, address changes, mergers, or mailing preferences.
• Draft correspondence for standard past-due accounts and collections.
• Review files to identify delinquent accounts and contact delinquent account holders to request prompt payment.
• Research customer discrepancies and past-due amounts in collaboration with collection managers and other accounting staff.
• Assist the accounting manager to reconcile revenue generated.
• Relay changes of information to the appropriate employee.
• Maintain bookkeeping databases and spreadsheets.
• Update customer accounts to reflect payment made.

 

Qualifications

An accounts receivable clerk supervises and tracks incoming payments into the company’s accounting system. They maintain accurate bookkeeping to ensure the firm suffers little to no losses. Mostly, these activities or tasks are performed with the aid of experience and skills. Depending on the employer or business, accounts receivable clerks must present and meet certain qualification requirements including education, training, certification, and work experience amongst others.

Certification and Licensing: Nowadays, earning additional certifications is a great way for an accounts receivable clerk to prove his/her qualifications to current and prospective employers. Although not a mandatory requirement, industry-specific certifications enable the individual to gain advanced theoretical knowledge of the roles and responsibilities of an accounts receivable clerk. Also, they can test their professional skills and probably advance their career. Simultaneously, a license to emphasize qualification is required for starting a career in the accounts receivable field. Several employers, firms, and businesses choose candidates with such licenses ahead of others. Licensing is essential since it helps to eliminate every doubt about the candidate’s ability and qualification to practice in the state or location. The following are some examples of certifications and licenses;

1. Accounts receivable certification: This can be obtained from the Institute of Finance and Management. Depending on your level, you can be designated as an Accredited Receivables Specialist or Accredited Receivable Manager respectively. This certificate validates and authenticates your commitment to comply with laws, regulations, and standards of a particular terrain. Similarly, it typifies and underlines an individual’s willingness to accurately perform their duties and demonstrates a deep understanding of the best practices and basic concepts of accounting.

1. Certified public accountant license: This license can be earned via the Institute of Public Accountants based on the country or region. This is adjudged to be the pinnacle of accreditation in most countries. It verifies the accounts receivable clerks’ expertise and knowledge in highly specialized accounting skills. Individuals with this license often get high-ranking jobs in the sector. Although not compulsory, a certified public accountant license boosts your resume and makes you a better candidate when searching or interviewing for an accounts receivable clerk position.

Education: A high school diploma is a minimum requirement for an accounts receivable clerk. However, most employers desire candidates and applicants with a bachelor’s degree in finance, business administration, and accounting. Associate degrees in mathematics or economics are accepted by some firms.

Work experience and training: Since on-the-job training is common in accounts receivables, employers and firms prefer candidates with at least two years of experience in accounting in a professional setting. Also, work experience and associated training enable the account receivables clerk to become conversant with specific methods and best practices common to this position. Therefore, get an entry-level position in accounting to build experience in the finance industry; experience and training enable you to learn accurate records and bookkeeping.

 

Essential Skills and Qualities for Accounts Receivable Clerks

To succeed in an accounts receivable role, some skills are needed and necessary. Often, the position covers a wide scope that spans administrative, clerical, and financial. Therefore, aspiring and current accounts receivable clerks should have the skills below;

• Information dissemination skills: Information sharing and communication is non-negotiable in accounts receivable; hence, an individual must possess excellent information dissemination skills to be successful. These skills encompass verbal, written, and listening and are used to inform customers about outstanding payments or set up payment plans.
• Robust IT skills: The field of accounting involves the use of software, applications, and equipment. As an accounts receivable clerk, you need robust IT skills to navigate, increase, and optimize efficiency and automation. Relatively, IT skills are needed to troubleshoot issues that may arise while operating these tools.
• Adaptability skills: Change they say is constant in life; the Generally Accepted Accounting Practices and Security and Exchange Commission frequently and regularly make changes to accounting standards and tax laws. An accounts receivable clerk must be adept and updated on such changes. Additionally, they should be able to adapt to and comply with the latest laws and standards in the industry to do their job efficiently.
• Other related soft skills include time management, attention to detail, technical skills, and organization skills.

 

How to Become an Accounts Receivable Clerk

Below is a guide on how to become accounts receivable clerks;

• Since it is a competitive career, get a bachelor’s degree in accounting, finance, and business administration. Some employers consider candidates with bachelor’s degrees in mathematics and economics as well.
• Secondly, get additional certification even though it is not compulsory. It will make you stand out amidst the fierce competition.
• Thirdly, develop your customer service skills, technical abilities, and other relevant skills while studying.
• Fourthly, get entry-level positions in the accounting or finance sectors to gain relevant experience and training and increase your knowledge.
• Finally, adjust your resume and apply for accounts receivable clerk roles.

 

Where to Work

Job prospects for an accounts receivable clerk exist in many fields, companies, and industries. Most of these firms are large enough to recruit technical staff to closely supervise, monitor, and manage the inflow of capital. These organizations range from pharmaceutical to manufacturing. Other employers of accounts receivable clerks are technical services, retailers, wholesale traders, government institutes, and healthcare sectors. In addition, an accounts receivable clerk can work in telecommunications, securities and commodities, finance, and insurance companies. Some non-profit organizations also employ Accounts Receivable Clerks.

                                  

Accounts Receivable Clerk Salary Scale

According to salary.com, the average annual salary of an accounts receivable clerk is $36,616. This is equivalent to $18 hourly. Depending on metrics and factors like location, experience, and employer; the yearly salary range between $13, 920-$60,328. Normally, an experienced accounts receivable clerk earns more than a starting accounts receivable clerk.

Business and Finance

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